Setback for Vedanta! NCLT upholds Adani's ₹15,000cr plan for Jaypee
What's the story
The National Company Law Appellate Tribunal (NCLAT) has upheld the approval of Adani Enterprises's over ₹15,000 crore resolution plan for Jaiprakash Associates Ltd under the insolvency process. The decision comes as a major blow to Vedanta, which had challenged the move. The plan was previously approved by the National Company Law Tribunal (NCLT).
Legal dispute
Vedanta challenged CoC decision favoring Adani
The case revolved around Vedanta's challenge to the Committee of Creditors (CoC) decision, which approved the Adani Group's plan while rejecting Vedanta's competing offer. The company contended its bid of about ₹17,000 crore was superior and provided better value, but was rejected in favor of Adani's proposal due to upfront cash and quicker payment timelines.
Commercial wisdom
Vedanta questioned lenders' 'commercial wisdom' under IBC
Vedanta also questioned the limits of lenders' "commercial wisdom" under the Insolvency and Bankruptcy Code (IBC), which allows creditors to exercise discretion in choosing resolution plans with minimal judicial interference. The company alleged that the CoC did not maximize value through a fair and transparent process, claiming its offer translated to about ₹12,505.85 crore on an NPV basis, the highest bid.
Bid rejection
Vedanta highlighted procedural lapses in bid rejection
Vedanta alleged procedural lapses, claiming it wasn't given adequate reasons for its bid's rejection or an opportunity to clarify its proposal. The company also highlighted an improved offer made on November 8, 2025, where it raised upfront cash to about ₹6,563 crore and equity infusion to ₹800 crore. Vedanta argued this would have resulted in better recovery for lenders.
Defense
CoC, resolution professional defended decision
The CoC and resolution professional defended their decision, saying it was based on commercial considerations such as certainty of payments and execution timelines. Solicitor General Tushar Mehta, representing the CoC, alleged Vedanta received information during the bidding process. He claimed Vedanta revised its bid after realizing where it fell short in terms of upfront cash and equity infusion, compromising process integrity.
Rebuttal
Vedanta denied allegations of bid revision post-shortcomings
Vedanta's counsel, Abhijeet Sinha, denied the allegations of revising its bid after learning about shortcomings. He called them "baseless" and asserted that all relevant documents were placed before the court. Sinha maintained that Vedanta's bid remained the highest after several rounds and accused the CoC of lacking transparency in its scoring process.